JP: BoJ MPB Minutes

Sun Apr 12 18:50:00 CDT 2015

The Bank of Japan published minutes of its monetary policy board meeting in March. At that time, it left its monetary policy unchanged with its key interest range at zero to 0.01 percent. The BoJ is currently buying about Y80 trillion of JGBs annually. Board member Takahide Kiuchi remained opposed to the October 31 easing. He continued to propose the BoJ should maintain the high degree of easing only during the two-year period from April 2013 so that it is not overdone. But his proposal was again voted down by the rest of the board.

Some members said that the BoJ had to pay attention to developments in the Japanese government bond markets, including its functioning and negative side-effects stemming from more easing. As a result of the BoJ's massive bond buying, some bond players have warned that the functioning of JGB markets has fallen, increasing volatility in bond markets.

Regarding its goal to achieve a 2 percent inflation target, at least two members pointed out that higher wages and corporate price setting need to keep rising.

Minutes follow monetary policy board meetings with a four to five week lag. For example, minutes released on June 19 were for the meeting held on May 21 and May 22.

Investors who want a more detailed description of Bank of Japan opinions will generally read the minutes closely. The MPB may issue a statement after its monthly meeting but the minutes will be much more detailed. In particular they will reveal who voted for and against the Committee's decisions and provide a more detailed description of the MPB's thinking. As such, the minutes are a market mover as analysts parse each word looking for clues to future policy.

Once Every 3-4 weeks.